The cash account for Santiago Co. on May 31 indicated a balance of $20,915. The March bank statement indicated an ending balance of $25,645. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:

(1)	Checks outstanding totaled $5,975.
(2)	A deposit of $3,796 had been made too late to appear on the bank statement.
(3)	A check for $1,482 returned with the statement had been incorrectly recorded as $482. The check was originally issued to pay on account.
(4)	The bank collected $4,515 on a note left for collection of which $515 was interest revenue.
(5)	Bank service charges for May amounted to $70.
(6)	A check for $894 was returned by the bank because of insufficient funds.

a. Prepare a bank reconciliation as of May 31.

b. Journalize any necessary entries based on the bank reconciliation.